1260037--3/27/2008--Energtek

related topics

{stock, price, share}

{acquisition, growth, future}

{interest, director, officer}

{regulation, change, law}

{property, intellectual, protect}

{operation, international, foreign}

{control, financial, internal}

{investment, property, distribution}

{cost, operation, labor}

{operation, natural, condition}

We are a development stage company with no operating history and may never be able to effectuate our business plan or achieve any revenues or profitability; at this stage of our business, even with our good faith efforts, potential investors have a high probability of losing their entire investment. We have no track record that would provide a basis for assessing our ability to implement our business plans. We may not be successful in carrying out our business objectives and potential investors may lose their entire investment in us. Because we have no revenue, our Company has a history of losses and we expect to incur losses for the foreseeable future. Our auditors have expressed substantial doubt about our ability to continue as a going concern. We have had negative cash flows from operations since inception. We will require significant additional financing, the availability of which cannot be assured, and if our Company is unable to obtain such financing, our business may fail. The scope of our patent protection is uncertain. If we fail to adequately protect our intellectual property through patent or other means, it could harm our business plans, prospects, results of operations and financial condition. We may become involved in intellectual property litigation that causes us to incur significant expenses or prevents us from engaging in our business, which could harm our business plans, prospects, results of operations and financial condition. If the Company is deemed to be an investment company, the Company may be required to institute burdensome compliance requirements and the Company's activities may be restricted. All of our activities and investments may prove unfruitful, harming our business plans, prospects, results of operations and financial condition. Part of our assets and some of our directors and officers are outside the United States, with the result that it may be difficult for investors to enforce within the United States any judgments obtained against us or any of our directors or officers. A significant part of our investments are located in Israel, and any major hostilities involving Israel, or the interruption or curtailment of trade between Israel and its present trading partners, could significantly harm our business, operating results and financial condition. We are entering into investments in Ukraine, which may be negatively affected by geopolitical clashes and political instability. Economic instability in the foreign nations in which we intend to operate might result from or lead to inflation, high interest rates and social unrest, which could adversely affect our operations and performance Political instability in the foreign nations in which we invest and intend to operate might result from or lead to military confrontation, frequent changes in national governments, terrorism and corruption which could adversely affect the Company s operations and performance We have not entered into derivative transactions to hedge market risks , and market fluctuation may adversely affect our operations. We may, in the future, issue additional common shares, which would reduce investors' percent of ownership and may dilute our share value. Our common shares are subject to the "Penny Stock" Rules of the SEC and the trading market in our securities is limited, which makes transactions in our stock cumbersome and may reduce the value of an investment in our stock. Because we do not intend to pay any cash dividends on our common stock, our stockholders will not be able to receive a return on their shares unless they sell them. We may issue shares of preferred stock in the future that may adversely impact the rights of the holders of our common stock.

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